Los Angeles daily herald., 1887-05-21
J. c. STUBBs
Gives a Valuable Opinion
OIL Sec. Four.
STATUS OF SOUTHERN PACIFIC.
They Once Had Line not Con-
trolled by any Interstate-Ex-
peeted Treasury Decision.

trOlled by any Interstate-Ex-
peeted Treasury Decision.
Associated Press Dispatches to the HERALD
WASHINGTON, May 20.--J. c. Stubhs,
General Traffic Manager OF the Southern
Pacific, was the first witness OF to day
before the Interstate Commission, and
was examined by Tweed, counsel for the
railroad, in support of the application to
have the temporary order suspending
the operations of Section Four of the
law, made permanent. Having referred
to the traffic over the Central Pacific.
the chairman inquired how it happened
that the witness had anything to do
with the Central Pacific.
SOUTHERN PACIFIC LEASED LINE.
He replied, the Central Pacific was a
leased line, operated as far as Ogden by
the Southern Pacific. Witness said,
shat in February, 1856, they had a
line whose rates could not be controlled
| by any Interstate Commerce Act, and
which therefore would not be obliged to
submit to the requirements of me long
and short haul provisions.
ADVANTAGE TO SHIPPERS.
The advantage such a route
would be to shippers, especially
when at the expiration of the
term of suspension of the Fourth
Section OF the Interstate Commerce Act,
is to be put into effect on the transcon-
tinental roads, will be best understood
by the shippers themselves, or those WHO
represent them.
CANADIAN PACIFIC INTENTIONS.
The Canadian Pacific are confident
that permission to bond o steamship hae
will be obtained in few days.
EXPECTED TREASURY DECISION.
New YORK, May 20.--Washing gton
special TO the Post says: A decision
will probably soon be rendered at the
Treasury Department, which will be of
equal interest to shippers, consumers
and railroad companies.
For a considerable period the Canadian
Pacific has been endeavoring TO obtain
from the Treasury Department. permis-
sion to bond goods on the steamship line
which runs from San Francisco to Port
Moody, the western terminus. of the
Canadian Pacific. The importance of
such an order will be seen. when it is
understood that goods shipped in bond
from San Francisco to Port Moody, could
be carried under the same bond to any
place within the United States, over the
Canadian Pacific.
ADVANTAGE OF BONDING GOODS.
Permission to bond goods over this
line, therefore, is in effect, permission
to the Canadian Pacific, to transport
merchandise from the Pacific Coast to
any point in the United States, at such
rates as it may fix. This would give
the Northern, lake and frontier cities OF
the United States, all OF New England
and the new States, through transcon-
tinental route.
VERY INTERESTING DISCUSSION.
j. C.. Stubbs, was further interrogat-
ed, as follows: The chairman questioned
the witness at some length, to learn his
reason for fearing the Canadian Pacific
competition. Stubs acknowledged that
Ito AlhC " 1o NCl1 tobktl tAt
transcontipental in the United States.
How could it make a profit. he wished
to see, if the witness was not reasoning
as did persons who supported the long
and short haul clause. MIR. Stabbs did
not know how mach Of the rates of the
Pacific Steamship lines he received, or
how much was left for the Canadian
Pacific. 1t was matter of public
knowledge, that the Canadian Pacific
did
NOT HAVE BUSINESS ENOUGH
to make a train.load daily; still they
were obliged to run, Trains cost no
more to haul them loaded than empty,
so they could take freight at rates suffi-
cient to pay for putting it OH and eff the
cirs. The Southern Pacific charged
high local rates on produce from san
Francisco to Nevada points, for the pur.
pose of encouraging the local sgricul-
tural interests of Nevada, which would
otherwise have been crushed. As to
California, the witness did not think
there was any truth in the complaint re.
ferred to by the Chairman, about freight
brought East at rate less than the cost
of transportation. In order TO
FAVOR CALIFORNIA WINE GROWERS,
Stubbs explained, at great length, the
method of adjusting local rates, as prac-
ticed before the passage of the law. He
endeavored to show how the law oper
ated to disturb that practice. He denied
making anynew tariff under the law. This
company adopted their highest local rate
as their through rate. He saw no reason
why Western roads should not be per-
mitted to make as low rates, as Eastern
roads, to the Missouri river.
This he thought sufficient answer to
the
COMPLAINT OF THE EASTERN SUGAR
Refiners. They could not get their sugar
into Western territory. Commissioner
Walker asked the witness what answer
he could make to the charge made, that
by their own system of rates, the trans
continental lines prevented the growth
of any manufacturing interests on the
Pacific Coast. The witness said their
rates had never been made in behalf
Of any manufacturing interests. They
resulted, simply from competition.
Detectives After Bank Robbers.
CITY OF MExIco, May 20.-Detec-
tives are wrestling with most myster-
ious crime, and thus far without satisfac-
tory results. Oae of the leading bank
ing firms Of this city has sustained loss
claimed to be as great as three hundred
thousand dollars. The officers OF the
institution on coming to the bank one
morning found the doors of the vault
wide open. All the cash had bsen car
ried off with the exception of some bags
Of silver.
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